CFO Survey Says Fed Will Hike 2 Times in 2016

It’s all eyes on the Federal Reserve for investors this week, ahead of the central bank’s last FOMC meeting of 2015, and CFOs have largely come around to the market view that the Fed will raise rates for the first time since the financial crisis. Over 90 percent of CNBC Global CFO Council members predict that this week’s meeting will produce a Fed interest-rate hike (compared to 28 percent in a September poll).

The CME Group FedWatch is showing the implied probability of a rate raise at more than 80 percent.

In addition to predicting the Fed’s first interest-rate raise since 2006, an overwhelming majority of surveyed CFO Council members — representing more than $2 trillion in market capitalization — think at least two or more rate hikes will take place in 2016.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza